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30 CHAPTER 2 Introduction to Enterprise Systems

organizational elements are often used interchangeably, depending on the con-
text. These data are relevant to many of the processes discussed in Chapter 1.
We will introduce additional organizational data as needed in the various pro-
cess chapters.

Client and Company Code
A client is the highest organizational level in SAP ERP. It represents an enter-
prise consisting of many companies or subsidiaries. Each company within the
enterprise is represented by a company code. Each company code represents
a separate legal entity, and it is the central organizational element in fi nancial
accounting. That is, fi nancial statements required for legal reporting purposes
are maintained at the company code level. A client can have multiple company
codes, but a company code must belong to only one client.
Figure 2-7 shows organizational data for GBI. Recall from Chapter 1 that
GBI consists of two companies, one in the United States and one in Germany.
GBI is represented by a client, and each of the two companies is represented
by a company code, US00 and DE00, respectively.

Figure 2-7: GBI organizational data

Plant

A plant is an organizational element that performs multiple functions and is
relevant to several processes. It is essentially a facility in which the following
functions are performed:
• Products and services are created.
• Materials are stored and used for distribution.

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